GCIKanabo Group secures first UK medicinal cannabis agreement since IPO
(LSE:KNB ) confirmed to investors that it has signed its first UK medicinal cannabis distribution framework agreement with Astral Health Limited ("Astral Health").
The medicinal cannabis firm focused on cannabis-derived products for medical patients made its debut on London’s main market last week by way of a reverse takeover of Spinnaker Opportunities Inc, raising £6m at 6.5p to grant it an initial market cap of around £23.4m.
Today, the Israeli Group unveiled its first secured deal since its flotation with Astral Health, which is 100% owned by LYPHE Group, which is part of Drug Science's Project Twenty21.
It said LYPHE is a big player in the ‘embryonic but fast-developing’ UK medicinal cannabis market. It has built a patient-access ecosystem that provides clinics, dispensing, import infrastructure and educational services to patients, doctors and the industry in the UK.
Through the agreement, it is intended that Kanabo's VapePod medicinal cannabis formula, under brand NOIDECS will be made available to Project Twenty21’s patients.
Project Twenty21 provides eligible patients with affordable medical cannabis treatment, monitored by the drugs advisory committee, Drug Science. The project’s aim is to create the UK's largest body of evidence for the effectiveness and tolerability of medical cannabis.
Since its flotation to the LSE, shares in Kanabo Group have seen an over four-fold increase from its entry price of 6.5p. The stock was trading 8.27% higher this morning at 27.5p.
The initial formula Astral Health will distribute under the name NOIDECS 400T, is based on the Israeli medical cannabis pharmacopoeia as a recommended ratio for pain management.
Today’s statement said that under the framework agreement, Kanabo and Astral Health will work closely together to make the products available to patients over the next 3-6 months.
In addition, under the framework agreement, Astral Health will acquire the rights to sell the Company's VapePod and certain medicinal cannabis oils across the United Kingdom.
“We believe this new product will be revolutionary for medical cannabis patients who need immediate relief of pain and will replace the smoking of cannabis flowers as a medical delivery method, which is one of Kanabo's main targets,” said Avihu Tamir, Kanabo's CEO.
"We have seen the headlines, and we have witnessed the negative impact of opioids. Pain is not going to go away, so a more natural and caring approach to treating it must find centre stage,” commented Dean Friday, Chief Executive Officer of LYPHE Group.
He added, “Thanks to our partnership with Kanabo we now have a metered dose product that can treat patients across the U.K. that suffer from chronic pain."
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